Growthpoint Properties announced distribution growth of 6.5% per share for its full year to 30 June 2018 for investors, delivering a solid set of results that match its market guidance.
For the first time Growthpoint’s distribution exceeded 200 cents per share for the year, paying out 208.6 cents per share. Its distributable income also exceeded the R6-billion mark for the first time; it increased annual distributions by 10.1%, paying R6.1-billion to shareholders this financial year. Group property assets increased 8.7% to R132.9-billion with most of the growth coming from Growthpoint’s internationalisation.
Norbert Sasse, Group CEO of Growthpoint Properties, attributes this positive performance to the strong contributions from its investment in Central and Eastern Europe (CEE) and the V&A Waterfront, as well as a solid performance by its South African property portfolio and rigorous cost controls.
Sasse reports, “At half-year we indicated that this may well be the toughest domestic operating environment that Growthpoint has yet faced, and the second six months of the year confirmed this. Any growth is good growth in this market and we are pleased to have achieved a solid set of results that deliver on our guidance and strategies. Growthpoint performed well to continue its 15-year-plus track record of uninterrupted dividend growth.”
Growthpoint is set for another year of dividend growth ahead. However, considering the concerning and persistently weak economy that has permeated domestic property fundamentals, its growth in the dividend per share for the financial year ending 30 June 2019 will be about 4.5%, subject to no unforeseen circumstances arising.
Growthpoint is one of the largest South African primary listed REIT. It creates value for its stakeholders with innovative and sustainable property solutions that provide space to thrive. It is the most liquid and tradable way to own commercial property in South Africa with an average of R5.9-billion of shares traded each month. Its size and diversity on three continents and across property sectors make Growthpoint strongly defensive, and its quality earnings are underpinned by high-quality physical property assets.